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When you enter an URL or you copy paste content into the text input field, this tool will extract the total number of keywords found inside the body of the webpage. After extracting all the words it will automatically calculate the frequency / occurrence for: One word phrase combinations, Two word combinations and Tree word combinations. Based on these numbers the keyword density is calculated.
OH BOY! For today’s search engines keyword density is just a very small factor when it comes to ranking pages for a specific keyword. It is however important to use your focus keyword(s) inside all the important on-page elements: Title tag, Meta description, H1, body, alt tag and internal links to make sure search engines understand your content. In addition to the on-page elements, off-page factors like: backlinks and anchor text still play a mayor role for search engines when indexing and ranking your webpages.
The best keyword density is like the ideal content length… A question asked by many and luckily answered by few. There is no exact answer to this question, because it all depends on the topic your writing about. Some topics ideal for long content forms and a lot of related keywords and synonyms. On the other hand you have the topics that are best served with a compact piece of content and a higher repetition of the same keywords. The best advice on this topic is writing natural and for human users instead of computers algorithms and crawlers.
Create and optimize your content to ensure you're getting the most bang for your buck. Identify where you content is lacking and make the adjustments to optimize your SEO.